Rewe growth strategy: Temma ‘bio’ concept

Germany’s Rewe Group is developing an expansion strategy in Eastern Europe for its Billa supermarket chain. Billa supermarket has revealed details about its expansion in the Czech Republic, including developing both through organic growth and via acquisitions. Billa also confirmed plans to invest further in its Romania operations over the next two years.

With approval from the Russian competition authority, the Rewe Group is acquiring twelve City stores of the Russian subsidiary OOO ENKA TC of the ENKA Group based in Istanbul. Rewe said it would convert the stores to the successful Billa supermarket format in the coming months and be integrated into the existing distribution network. The company also plans to open around ten new Billa stores by the end of the year.

Earlier this year, Rewe said it would expand its Temma organic and natural “bio supermarket” format in city centres throughout the country to regions with a high level of purchasing power. Areas marked for expansion include North Rhine Westfalia (Cologne, Bonn, Duesseldorf, Essen) and Rhine-Main-Area (Frankfurt, Wiesbaden, Mainz) and Hamburg. Rewe has three Temma stores in Germany – two in Cologne and one in Dusseldorf and is seeking sites with selling space of 450-850 square metres to open Temma stores.